SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 5, 2003
CRYOLIFE, INC.
(Exact name of registrant as specified in charter)
Commission File Number: 1-13165
Florida 59-2417093
(State or other jurisdiction of (IRS Employer Identification
incorporation) No.)
1655 Roberts Boulevard N.W.
Kennesaw, Georgia 30144
(Address of principal executive offices) (Zip Code)
Registrant's telephone number including area code: (770) 419-3355
(Former name or former address, if changed since last report)
Item 7. Financial Statements and Exhibits.
(a) Financial Statements.
Not applicable.
(b) Pro Forma Financial Information.
Not applicable.
(c) Exhibits.
Exhibit Number Description
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99.1 Transcript of earnings conference call held August
5, 2003
Item 12. Results of Operations and Financial Condition
The information in this Form 8-K and the Exhibit attached hereto shall not be
deemed "filed" for purposes of Section 18 of the Securities Act of 1934, nor
shall it be deemed incorporated by reference in any filing under the Securities
Act of 1933 or the Securities Exchange Act of 1934, except as shall be expressly
set forth by specific reference in such filing.
On August 5, 2003, CryoLife, Inc. ("CryoLife") held its second quarter 2003
earnings conference call, broadcast live by webcast. A transcript of the call is
attached hereto as Exhibit 99.1 and incorporated by reference.
Except for the historical information contained in this report, the statements
made by CryoLife are forward-looking statements that involve risks and
uncertainties. All such statements are subject to the safe harbor created by the
Private Securities Litigation Reform Act of 1995. CryoLife's future financial
performance could differ significantly from the expectations of management and
from results expressed or implied in the earnings conference call. For further
information on other risk factors, please refer to the "Risk Factors" contained
in CryoLife's press release dated August 5, 2003, and in CryoLife's Form 10-K
for the fiscal year ended December 31, 2002, as filed with the Securities and
Exchange Commission. CryoLife disclaims any obligation or duty to update or
modify these forward-looking statements.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
CRYOLIFE, INC.
Date: August 11, 2003 By: /s/ D. Ashley Lee
--------------------------------------
Name: D. Ashley Lee
Title: Vice President, Chief Financial
Officer and Treasurer
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EXHIBIT INDEX
Exhibit Number Description Page
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99.1 Transcript of earnings conference call held August 5, 2003 5
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EXHIBIT 99.1
TITLE: Q2 2003 CryoLife, Inc. Financial Conference Call
DATE: Tuesday, August 5, 2003
TIME: 11:15 A.M. ET
Conference call Good morning, ladies and gentlemen, and welcome to the
coordinator: CryoLife second quarter financial conference call. At this
time, all participants have been placed on the "listen only"
mode and the floor will be open for your questions following
the presentation. It is now my pleasure to turn the floor
over to your host, Mr. Steve Anderson, Chief Executive
Officer. Sir, the floor is yours.
Steve Anderson: Good morning, everyone. This is Steve Anderson, the CEO of
CryoLife, and I would like to welcome you to CryoLife's
second quarter and first half conference call. With me today
is Ashley Lee, the Company's Vice President of Finance and
Chief Financial Officer, and Clinton Richardson, a partner
with the Company's legal counsel, Arnall Golden & Gregory.
This morning, we will be commenting on the Company's
operating results for the second quarter and the first half
of '03. The agenda for today's call is as follows: First,
Ashley will comment on this morning's press release and
we'll get into the detail of the numbers. Second, Mr.
Richardson will comment on various litigation and insurance
issues. Then, I will follow Mr. Richardson with comments on
international operations, BioGlue revenues, SynerGraft's AV
access graft results, allograft tissue revenues and certain
FDA matters relating to SynerGraft issues. After my
comments, Ashley will give some financial guidance going
forward and after the guidance comments, we will then open
up the conference call for questions. At this time, Ashley
will comment on this morning's press release.
Ashley Lee: Thanks, Steve. First of all, I would like to read the
following statement in order to comply with the Safe Harbor
requirements of the Private Securities Litigation Reform Act
of 1995, I would like to make the following statement.
Comments made in this call which look forward in time
involve risk and uncertainties and are forward-looking
statements within the meaning of the Private Securities
Litigation Reform Act of 1995. The forward-looking
statements include the statements made as to the Company's
or management's intentions, hopes, beliefs, expectations or
predictions of the future. All statements made during this
call that do not reflect historical results or information
should be deemed to be forward-looking statements. It is
important to note that the Company's actual results could
differ materially from those projected in such
forward-looking statements. Additional information
concerning risk and uncertainties as contained from time to
time in the Company's SEC filings including the "Risk
Factors" section of our Form 10K for the year ended December
31, 2002. This presentation may contain information such as
"revenues prior to adjustment to estimated tissue recall
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returns" and pro forma net loss per share that are deemed to
be non-GAAP measures pursuant to Regulation G promulgated by
the SEC. A reconciliation of these measures to the most
closely applicable GAAP measure is contained in the
Company's press release issued this morning which has been
posted on the Company's website.
This morning, CryoLife reported financial results for the
second quarter and six months ended June 30, 2003.
Revenues, as recorded for the three- and six-months periods,
were 15.7 and 31.6 million compared to 23.3 and 48.7 million
in the corresponding periods in the prior year.
Revenues as reported for the six months ended June 30, 2003
include $848,000 in favorable adjustments related to
estimated tissue recall returns. Revenues as reported for
the six months ended June 30, 2002 include 2.4 million in
estimated tissue recall returns. Revenues excluding these
items increased 4% in the second quarter of 2003 compared to
the third quarter of 2003. Reported net loss for the three
and six months ended June 30, 2003 are 22.3 million or a
$1.14 per share and 22.8 million or a $1.16 per share. This
compares to losses of 5.5 million or $.28 per share and 2.4
million or $.13 per share in the corresponding periods in
the prior year.
The above amounts include the following items recorded in
2002: one, a recall reserve of 2.4 million recorded in the
second quarter of 2002; and two, the write-off of a net of
8.9 million of tissues associated with the recall in the
second quarter of 2002. The numbers also include the
following items recorded in 2003: one, an adjustment to the
recall reserve of $848,000, which effectively increased
revenue in the first quarter of 2003; two, the effects of
the shipment of tissues previously written off in 2002 of
$3.4 million; three, the personal-injury loss accrual of
12.5 million in the second quarter of 2003; and four, the
valuation allowance against deferred tax assets of 11.4
million in the second quarter of 2003. Reported cost of
human tissue preservation services as a percentage of
reported human tissue preservation service revenues were 60%
for the three months ended June 30, 2003 compared to 98.8%
for the three months ended June 30, 2002 and were 43% for
the six months ended June 30, 2003 as compared to 67% for
the six months ended June 30, 2002. Cost of human tissue
preservation services as reported for the three and six
months ended June 30, 2003 include an increase to cost of
preservation services related to lower-of-cost-or-market
write-downs of $1.1 million and $1.4 million respectively,
and includes the favorable effect of shipments of tissue
with a zero cost-basis of 1.0 million and 3.4 million
respectively. Cost of human tissue preservation services
revenues as reported for the three and six months ended June
30, 2002 include a $10.0 million write-down of deferred
preservation costs offset by a $1.1 million decrease in cost
of preservation services due to estimated tissue returns.
Cost of preservation services as a percentage of revenues
increased over historical levels primarily due to changes in
processing methods and higher overhead-cost allocations
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associated with the decreased volume of tissues processed.
We believe that once the issues with the FDA are resolved,
cost of human tissue preservation as a percentage of
revenues will decrease as compared to current levels.
BioGlue revenues were 6.8 million and 13.3 million for the
three and six months ended June 30, 2003 compared to 5.3 and
10.1 million in the corresponding periods of 2002. BioGlue
revenues in the second quarter of 2003 increased 30% over
the second quarter of 2002 and 5% over the first quarter in
2003. Total tissue processing revenues were 8.6 million in
the second quarter of 2003 compared to 8.3 million in the
first quarter of 2003 excluding $848,000 in favorable
adjustments to the recall reserve and compares to 6.3
million in the fourth quarter of 2002. Cardiac revenues were
5.0 million for the second quarter of 2003 compared to 4.6
million in the first quarter of 2003 excluding $92,000 in
favorable adjustments to the estimated tissue recall returns
and compared to 3.3 million in the fourth quarter of 2002.
Vascular revenues were 3.3 million for the second quarter of
2003 compared to 3.5 million in the first quarter of 2003,
excluding $711,000 in favorable adjustments to the estimated
tissue recall returns and compared to 2.9 million in the
fourth quarter of 2002. Orthopedic revenues were $280,000
for the second quarter of 2003 compared to $150,000 in the
first quarter of 2003 which includes $45,000 in favorable
adjustments to the estimated tissue recall returns and
compared to 108,000 in the fourth quarter of 2002. General
administrative and marketing expenses increased 23.5 million
for the three months ended June 30, 2003 compared to 11.4
million for the three months ended June 30, 2002. This also
compares to 11.6 million in the first quarter of 2003 and
15.4 million in the fourth quarter of 2002. The increase
from the prior year was primarily due to an accrual of $9
million for the potential expense to resolve ongoing product
liability claims in excess of insurance coverage, and 3.9
million for unreported product liability claims related to
services performed and products sold prior to June 30, 2003,
and $150,000 for deductibles under our prior year policies.
Additional increases in general and administrative expenses
were due to an increase of approximately 1.3 million and 3.3
million respectively in professional fees due to increased
litigation, litigation settlement costs and issues
surrounding the FDA order and an increase of approximately
179,000 and 488,000, respectively, in insurance premiums.
We periodically assess the recoverability of deferred tax
assets and provide evaluation allowance when management
believes it is more likely than not that it's deferred tax
assets would not be realized. We evaluated several factors
to determine its evaluation allowance relative to our
deferred tax assets as necessary. Based on the results of
this analysis, the Company has determined that it is more
likely than not that the Company's deferred tax assets will
not be realized and recorded evaluation allowance of $11.4
million against deferred tax assets as of June 30, 2003. The
Company was notified by its bank that it intends to require
the Company to enter into a forbearance agreement which
would increase the interest rate charged on our $4.5 million
term loan - the LIBOR plus 4% - and accelerate the principal
payments on the term loan by requiring a balloon payment to
pay off the outstanding balance by October 31, 2003. The
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Company has sufficient cash and cash equivalents to pay the
remaining outstanding balance of the term loan. Based on the
analysis of the product liability cases now pending against
the Company, the Company recorded a liability of 9 million
for the estimated potential expense of resolving these cases
reflecting the estimated uninsured portion of the liability.
These amounts do not reflect actual settlement arrangements
or judgments against the Company, nor do they represent a
cash reserve. The Company engaged an independent actuarial
firm to estimate the loss for product liability claims
incurred and not recorded during the 2002/2003 policy year.
Based on the review of the actuarial analysis, the Company
recorded an additional liability of $3.9 million to increase
the total accrual to $7.5 million for estimated costs for
unreported product claims related to services performed and
products sold prior to June 30, 2003. The Company also
engaged an independent actuarial firm to estimate the loss
for product liability claims incurred and not reported
during the 2003/2004 policy year. Based on the review of the
actuarial analysis, the Company believes that its 2003/2004
insurance coverage is adequate to defend against claims
incurred and reported during the 2003/2004 insurance year.
Now, I'll turn it over to Clint Richardson for a summary of
ongoing litigation.
Steve Anderson: Thanks Ashley. Clinton Richardson, the Company's legal
counsel, will now comment on various legal and insurance
matters.
ClintRichardson: As of August 1, 2003, approximately twenty-one personal
injury lawsuits were opened. Of the twenty-one opened cases,
two lawsuits were filed in the 2000/2001 insurance policy
year, four were filed in the 2001/2002 insurance policy
year, fourteen were filed in the 2002/2003 insurance policy
year, and one was filed in the 2003/2004 policy year. For
the 2000/2001 and 2001/2002 insurance policy years, the
Company maintained claims-made insurance policies which
management believes to be adequate to defend against the
suits filed during those periods. For the 2002/2003
insurance policy year, the Company maintains that claims
made insurance policies with three carriers. Two of the
three insurance companies who issue policies for the
2002/2003 year have confirmed coverage for the first two
layers of coverage totaling $15 million. However, most of
this coverage has already been used to defend and settle
lawsuits. A third insurance company covering the last $10
million of the remaining insurance have indicated that it
intends to exclude eleven matters under its policy. The
Company is evaluating its alternatives in regards to
resolving the issues with the third carrier. The Company
filed a motion to dismiss the consolidated shareholders
lawsuit which the U.S. District Court denied in part and
granted in part. The discovery phase of the case commenced
on July 16, 2003. The Company carries directors and officers
liability insurance policies which the Company believes to
be adequate to defend its action. As you know, two lawsuits
against the individual officers and directors have been
filed by shareholders derivatively on behalf of the Company.
Last year, the Company's board of directors established an
independent committee to investigate and report on the
allegations made in those two lawsuits. The independent
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committee, which engaged independent experts and legal
counsel to assist in its study, has now completed its
extensive investigation and reported to the board of
directors. The report concludes that no officer or director
breached any fiduciary duty and recommends that the board of
directors seek to have the lawsuits dismissed.
Steve Anderson: The Company's total BioGlue revenues were 13.3 million for
the first six months of 2003, up 32% over the first six
months of last year. The majority of our international sales
are BioGlue sales and international sales of BioGlue are up
35% year-to-year. BioGlue is approved in international
markets for all vascular sealing and for the sealing of air
leaks in lungs. It is also being increasingly used in Europe
and Canada where it is approved for the sealing of dura
mater in both spinal surgery and brain surgery. A number of
papers have been accepted for publication on the various
uses of BioGlue and the papers are positive. Particularly
positive is a paper co-authored by Professor Andrew Kaye of
Melbourne, Australia documenting the successful use of
BioGlue on 216 patients in a clinical study on dura sealing.
There was also a recent paper published of our six center
IDE study of the use of BioGlue on 151 patients for the
reduction of anastomotic bleeding an approved indication in
the U.S. and internationally. The study concluded that
BioGlue is a safe and effective adjunct to standard repair
methods and reduces anastomotic site bleeding in cardiac and
vascular repair patients.
Domestic BioGlue sales are up 31% year to year and we
continue our development efforts for other forms of BioGlue
and BioGlue products. The foam version of the product is
currently being evaluated as a means of controlling
endoleaks in endovascular adominal aortic grafts. We are
also investigating the use of BioGlue in hernia repair, and
this hernia repair application, IDE application, is
scheduled to be submitted to the FDA in late 2004.
Our Japanese distributor has completed the clinical trial of
BioGlue and the Japanese Ministry of Health continues to
evaluate post-clinical studies and the follow-up of the
clinical trial. We don't know when BioGlue might be approved
in Japan.
A number of papers have been published recently on the
SynerGraft bovine ureter vascular graft for AV access that
is approved in the European Union. We have now implanted
about a hundred Model 100 vascular grafts in humans with
promising results. We are planning to submit an IDE for the
Model 100 vascular graft to the FDA in the second half of
2004.
Cardiovascular allograft tissues, both allograft valves and
vascular grafts, continue their recovery from the effects of
the August `02 recall. Excluding the $92,000 adjustment to
the recall reserve in the first quarter of 2003, second
quarter revenues for cardiovascular allograft preservation
are up 9% over the first quarter of `03, and 53% over the
fourth quarter of '02.
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We are still discussing SynerGraft process allografts with
the FDA. While they have not made their final decision it
appears that we will have to file either a 510K or an IDE
for the SynerGraft processed allograft heart valves. It
appears to us right now that the SynerGraft processed
allograft vascular grafts will be classified as banked human
tissue. Both of these assumptions may prove to be incorrect,
however.
Dr. Hawkins of Salt Lake City recently published a paper in
the Journal of Thoracic and Cardiovascular Surgery that
discussed his experience with 14 SynerGraft processed
allografts, both heart valves and conduits, and compared the
SynerGraft process allografts to a historical control group
of twenty standard processed allografts. The results show at
one year that patients with standard processed allografts
had average PRA levels. Now, PRA stands for Panel Reactive
Antibodies. They had an average PRA level of 73% while
patients receiving SynerGraft process allograft had PRA
levels of only 8%. The significance of this data is that it
appears that SynerGraft processed allografts have a reduced
antigenic response in comparison to standard processed
allografts.
As you'll recollect we began shipping non-boned ligaments
and tendons to a limited number of our accounts in late
February and early March of `03. I'm pleased to announce
that we notified our customers that we would begin shipping
boned orthopedic tissue on August 1st. Although it is too
soon to comment on our effectiveness in reentering the
orthopedic allograft market, we remain optimistic. Our
orthopedic technical and support management is in place and
we have about 105 independent orthopedic technical
representatives who will be contacting accounts in the near
future.
We also continue to restaff the Company since last year's
recall and subsequent 105 person layoff in September of '02.
During the first half of '03 we have restaffed 30 positions
throughout the Company. Many of whom were re-hires of people
employed prior to the layoff. We expect this trend to
continue for the foreseeable future. We now have a total of
305 people working at CyroLife both in the United States and
in international markets.
Procurement of tissues remain strong and is continuing to
increase month to month. In the fourth quarter of '02 we
averaged 286 hearts per month and 214 vascular tissues per
month. During that quarter we were not accepting any
orthopedic tissues for processing.
During the second quarter of '03 we averaged 307 hearts per
month, and in the second quarter of '03 we averaged 411
vascular grafts per month. Our orthopedic procurement during
the second quarter averaged 201 tissues per month. At this
time Ashley will give some guidance for the rest of the
year.
Ashley Lee: We believe that we will be able to generate approximately 65
to 67 million in revenues during 2003. This is a revision
from our previous forecast of approximately 70 million. The
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change is necessary due to delays in the resumption of
shipping our four lines of orthopedic tissues, delays in
getting SynerGraft processing issues resolved with the FDA,
and yield issues. Gross margins, in large part, will be
determined by allograft processing levels for the remainder
of the year, future tissue yields, the number of shipments
of tissues previously written off, and the percentage of
revenues generated from the sale of BioGlue surgical
adhesive. Currently, we are not able to project gross
margins with a great degree of accuracy, although we expect
that they will be less than the gross margin percentages
posted at the first half of the year. Consistent with our
previous guidance, we believe that SG&A expenses will be at
the high end of the $42 to $46 million range that was
communicated in previous conference calls, excluding the
charges in the second quarter of 12.5 million related to
product liability accruals. The ultimate level of G&A
expenses is highly dependent upon the timing of the
resolution of regulatory issues, legal issues and other
items. That concludes my comments and I'll turn it back over
to Steve.
Steve Anderson: At this time we'd like to open up the conference call for
questions.
Conference call Thank you, the floor is now open for questions. If you do
coordinator: have a question, please press 1 followed by 4 on your touch
tone telephone at this time. If at any point your question
has been answered you may remove yourself from the cube by
pressing the pound key. Once again, that's 1 followed by 4
on your touch tone telephone at this time. Your first
question is coming from Tom Gunderson of Piper Jaffrey,
please state your question.
Tom Gunderson: Hi, good morning. Just a little bit more on the vascular
sales and the changes in guidance. You did have some
guidance for Q2 that fell a little short and it looks like
it was mostly in vascular sales. Would you comment on that
were there any assumptions on demand or procurement that
proved to be wrong in Q2 or was there something else going
on?
Ashley Lee: There were two issues, Tom, that lead to the short fall on
vascular and the decrease compared to the first quarter of
this year. First of all in the first quarter of this year we
still had available a lot of prescription tissue. Those are
tissues processed between October of '01 and August of '02
that were still available for us to ship and by and large we
were depending upon those tissues to drive first quarter
revenues. On the surface if you look at vascular procurement
which increased 53% during the second quarter it would lead
one to believe that the revenues would have increased
sequentially. However, there were a couple of issues there.
First of all, it takes us approximately sixty days to get
tissues through our system so some of the increase that you
saw on our vascular procurement will really help us in the
third quarter of this year. The other issue which is just a
little bit beyond - out of - our control at this time was
the yield issue related to how much implantable tissue we
are able to get out of the procurement. We expect that once
we get these issues resolved with the FDA that the yields
will increase on all of our tissues across the board so that
we will be able to hopefully meet the projections that we
set forth for the remainder of the year.
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Tom Gunderson: Are you able to explain a little bit more about yield and
FDA?
Ashley Lee: I will say that we are working on several things with the
FDA right now a lot of which will probably affect yields
going forward and I really don't want to comment in much
detail about specifically what we're working on with the
FDA.
Tom Gunderson: Okay. And then as a bridge to the FDA there's a lot of
update here but there is also a lot of people that you've
got there that might be able to answer. Is there any new
news as far as the February '03 notice with the FDA?
Steve Anderson: I don't have any new news on that Tom. We have a meeting
with FDA on those issues on August 7, and we continue to
work our way through those issues. And, I would expect that
some time in the fall we will be reinspected by them as
regards the 483 from February but we never know when they're
going to inspect us and they never tell us in advance. So,
it - I can't be more definite than that.
Tom Gunderson: Okay. And just clarification - the meeting on 8/7 that's in
Washington or Atlanta?
Steve Anderson: It's in Atlanta at the district office.
Tom Gunderson: Okay, and then the last question BioGlue guidance is
basically just doubling the first half, is that a matter of
being conservative or is there a certain supply/demand wall
that we've hit for this year and it will go up again next
year?
Ashley Lee: I think that the third quarter is typically very slow in
Europe. And Europe accounts for up to 20% of our sales right
now. But there are so many people on vacation. I think if
you look at historically over the last year or two revenues
have not increased much sequentially in the third over the
second quarter because of that very issue. And then
seasonally just with the holidays and everything coming up
in the fourth quarter we hopefully are just being a little
bit conservative. We don't really think its any reflection
on any slow down in demand at all.
Tom Gunderson: Okay, good, thank you.
Conference call Thank you. Your next question is coming from Bob Holacy of
coordinator: Black Rock Capital, please state your question.
Bob Holacy: Yes, thank you. I just have a couple of questions on the
liabilities. Do you have any idea -- has it been indicated
at all -- how many more lawsuits might be pending against
the Company or soon to be filed?
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Clint Richardson: No. This is Clint Richardson, we don't have any particular
information we can share about that. We try to be inclusive
in our original comments.
Bob Holacy: The comments of one filed in `03 to `04 year. When does that
year start? Is it in mid-year?
Ashley Lee: It started on April 1st.
Bob Holacy: April 1st. So there's been one filed since April 1st?
Ashley Lee: Yes. I will say that we have settled approximately five
cases at this time and four have been dismissed. And of the
five that we have settled it is our opinion that three of
those five were some of the more serious cases that were
facing the Company.
Bob Holacy: So if you've settled five cases and the insurance coverage
so far has taken up about $12.5 million dollars - are those
the right numbers to use? As we think about kind of the
magnitude.
Ashley Lee: That is correct.
Clint Richardson: Those numbers also include the cost of defense.
Bob Holacy: It does include the cost of defense.
Ashley Lee: Yes.
Bob Holacy: In one of the questions you mentioned sixty days to work
through your process. You expect some of those vascular
tissues that were procured in the second quarter and
hopefully into the third quarter, do you normally see a
seasonal slow down in tissue sales in the third quarter with
vacations and stuff?
Ashley Lee: No. You actually see the opposite especially as it relates
to cardiac tissues because a lot of the congenital surgery,
pediatric surgery, is done during the summer months when
kids are out of school. So you would typically expect to see
cardiac revenues increase. We really don't see much
seasonality as it relates to vascular tissues and orthopedic
tissues.
Bob Holacy: And one final question, which is actually escaping me right
now, I'll get back in queue if I think of it. Thanks.
Conference call We have time left for one last question from Sung Yi of
coordinator: Jenny Montgomery Scott.
Sung Yi: Yes, on July 25th of this year, California's Court of
Appeals court. Appeal Court favors ruling to you, and on
page 12 of the Court's decision it mentioned about the
possible National law may be concerned with that and my
question to you is what kind of precedent can this ruling
apply to the other jurisdictions?
Clint Richardson: I don't have that in front of me, but I think what you are
referring to is the reference to an appellate court case in
another jurisdiction other than California that cited a
general, what that court found is a general statement of law
around the country which is that the issue of strict
liability would not apply to a service Company, instead
service companies are measured against the standard of
negligence, you know doctors are measured against a
negligence standard called malpractice. So I think that's
what you're referring to. With the statement of that court,
that's a general rule throughout the country and that
certainly, from our perspective is good news, it's not
unexpected, but good news.
Sung Yi: Thank you.
Conference call I'm sorry. We do not have any time left. I'd like to turn
coordinator: the floor back to the speakers.
Steve Anderson: Thank you very much for joining us and we will talk to you
in about ninety days.
Conference call Thank you. This does conclude today's teleconference. You
Coordinator: may disconnect your lines at this time and have a wonderful
day.
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